PE investments in realty up 26% this year

HYDERABAD: The value of private equity (PE) transactions in the country’s real estate sector during the first nine months of 2013 was up 26 per cent at Rs 4,716 crore, indicating that funds continue to see India as a an investment destination despite a slowdown in the local market.

This was revealed in a report by real estate consultancy Cushman & Wakefield. In the first nine months of last year, the PE deals in the real estate sector stood at Rs 3,750 crore.

The increase in PE deals was due to a rise in investments in leased income generating office properties by institutional investors, said the report. But the slowdown in the local real estate market continued, it added.

The net absorption in offices was down 15 per cent during the period, vacancies increased and sales were subdued in the residential segment.

This was in part due to slower GDP growth, inflationary pressure and volatility in foreign exchange and stock markets, , the report said. Apart from offshore funds, domestic capital is also being raised and deployed in the income generating office properties, it added. “Despite a slowdown in the local real estate market, funds remain committed to India as a top investment destination with overall private equity investment only expected to increase especially in income yielding assets,” said Sanjay Dutt, Executive Managing Director South Asia, Cushman & Wakefield, in a statement.

With improving sentiments, the deal momentum in the real estate sector is expected to increase in the coming year, he added.

Around 65 per cent of the overall investment during the year happened in the third quarter at Rs 3,078 crore. The residential segment saw a drop of 11 per cent during the January-September period at Rs 2,240 crore, compared with the year-ago period.

Bangalore saw the highest level of announced investment value in 2013 at Rs 1,979 crore, up 79 per cent. At Mumbai, it was down 43 per cent in the total volume of deals worth Rs 720 crore.

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HYDERABAD: The 159 Kms long stretch of the Outer Ring Road (ORR) is a road-cumarea development project. The ORR connects Patancheru-Shamshabad-Hayathnagar-Medchal Patancheru, and also provides the connectivity to various State Highways and National Highways.

HYDERABAD: The rising prices and shrinking options are now quietly getting accepted by people, as they seem to give up now. The hole in the pocket is growing bigger and bigger everyday. No matter how much you earn, the impact is felt by everyone.

Against the backdrop of its continuous efforts to influence the government to take up several reform measures and policy changes, real estate body, the Confederation of Real Estate Developers’ Association of India (Credai), is holding a two-day national conference with a theme ‘Housing the game changer – Leading to double-digit GDP growth’ in New Delhi from December 13, 2013.

HYDERABAD: The ORR is not just a piece of infrastructure. It was a planned growth corridor, inspired by many similar development ideas in the West. The regulations around ORR were to be such that it brought in the right kind of players to unlock the land value. This was to encourage transit-oriented development.

HYDERABAD: The real estate sector in Hyderabad has changed dramatically over the past two decades riding on the growth mainly of the IT sector and other services sectors, including telecom, transport and financial services.

HYDERABAD:The state government on November 27 reduced stamp duty on major transactions including sale of land. According to sources, the move was forced by the Centre which is providing huge funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.

HYDERABAD: The Hyderabad valuations index rose by 3 per cent in the last quarter. Since values are low, there is an increasing number of people upgrading to premium living which has now come within their budgets. As a result, there is robust demand for luxury properties in the Rs 40-80 lakh category. The in-demand configuration too is 2 and 3-BHK units. The 4-BHK configuration were less in demand and therefore oversupplied.